Sweden's biggest pension firm cuts stocks on inflation concern
The specter of accelerating inflation is prompting the biggest pension manager in Sweden to cut its holdings of stocks and bonds.
By Rafaela Lindeberg / BLOOOMBERG
Alecta, which manages USD 130bn, is instead boosting exposure to alternative assets such as infrastructure projects and residential housing in an effort to preserve returns.
"Longer term we may see rising inflation and that is one of the reasons we are switching the portfolio towards more real assets," the firm's chief investment officer Hans Sterte said in an interview.
In Alecta's home market of Sweden, calls of excessive valuations are getting louder with the benchmark stock index up about 30 percent so far this year.
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